Correlation Between NEOS ETF and Kurv Yield

Can any of the company-specific risk be diversified away by investing in both NEOS ETF and Kurv Yield at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining NEOS ETF and Kurv Yield into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between NEOS ETF Trust and Kurv Yield Prm, you can compare the effects of market volatilities on NEOS ETF and Kurv Yield and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in NEOS ETF with a short position of Kurv Yield. Check out your portfolio center. Please also check ongoing floating volatility patterns of NEOS ETF and Kurv Yield.

Diversification Opportunities for NEOS ETF and Kurv Yield

0.84

Correlation Coefficient

NEOS ETF  Kurv Yield

Very poor diversification

The 3 months correlation between NEOS and Kurv is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding NEOS ETF Trust and Kurv Yield Prm in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kurv Yield Prm and NEOS ETF is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on NEOS ETF Trust are associated (or correlated) with Kurv Yield. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kurv Yield Prm has no effect on the direction of NEOS ETF i.e., NEOS ETF and Kurv Yield go up and down completely randomly.

Pair Corralation between NEOS ETF and Kurv Yield

Given the investment horizon of 90 days NEOS ETF is expected to generate 3.23 times less return on investment than Kurv Yield. But when comparing it to its historical volatility, NEOS ETF Trust is 2.07 times less risky than Kurv Yield. It trades about 0.12 of its potential returns per unit of risk. Kurv Yield Prm is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest  2,945  in Kurv Yield Prm on August 30, 2024 and sell it today you would earn a total of  569.00  from holding Kurv Yield Prm or generate 19.32% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	100.0%
Values	Daily Returns

NEOS ETF Trust  vs.  Kurv Yield Prm

NEOS ETF Trust

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in NEOS ETF Trust are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong basic indicators, NEOS ETF is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

Kurv Yield Prm

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Kurv Yield Prm are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak essential indicators, Kurv Yield reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with NEOS ETF and Kurv Yield

The main advantage of trading using opposite NEOS ETF and Kurv Yield positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NEOS ETF position performs unexpectedly, Kurv Yield can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Kurv Yield will offset losses from the drop in Kurv Yield's long position.

The idea behind NEOS ETF Trust and Kurv Yield Prm pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.